FedEx Ground celebrates opening of new Chicago hub
As part of an ongoing US expansion plan, FedEx Ground is celebrating the opening of a major distribution hub in Chicago.
As part of an ongoing US expansion plan, FedEx Ground is celebrating the opening of a major distribution hub in Chicago.
The new 430,000 square-foot operation is adjacent to the company’s original Chicago hub, which was one of the first three hubs built in 1985 when the company’s predecessor, RPS, Roadway Package Systems, began operations. The new distribution facility, which is nearly double in size, will provide increased processing rates of up to 30,000 packages per hour, additional load and unload doors, more scan tunnels and sorters, all of which will better serve the increasing customer base in the Chicago area. In conjunction with this major investment, the move will create more than 30 new positions, increasing the hub workforce from 860 employees and independent contractors to nearly 900.
“Enhancing our distribution capability in the central region is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said Jim Primm, vice president of the central division of FedEx Ground. “This new facility demonstrates the region’s ongoing importance as a major distribution and logistics centre, and will help us meet the increasing demand of local shippers as we transport shipments within the Chicago area and across the country.”
The new FedEx Ground hub is part of the company’s nationwide network expansion to boost daily package volume capacity and further enhance the speed and service capabilities of its network. Since embarking on the multi-year expansion program in 2002, FedEx Ground has opened seven new hubs featuring the advanced material handling systems and has expanded and/or relocated more than 500 local facilities.
The network enhancements have resulted in accelerating ground service delivery by one day or more in more than half of the United States. FedEx Ground delivers more than 50% of packages in two days or fewer and more than 80% of packages in three days or fewer. Additionally, average daily package volumes have increased by more than 50% from 2.1m in 2003 to more than 3.4m today.
In addition to the new Chicago hub, there are eight other FedEx Ground facilities operating in the area, with the most recent additions being automated facilities in McCook and Wheeling, which respectively have workforces of more than 414 and 330 employees and independent contractors.
